Economic Growth With Intergenerational Altruism

B. Douglas Bernheim, Debraj Ray

    Research output: Contribution to journalArticle

    Abstract

    We consider the properties of equilibrium behaviour in an aggregative growth model with intergenerational altruism. Various positive properties such as the cyclicity of equilibrium programs, and the convergence of equilibrium stocks to a steady state, are analyzed. Among other normative properties, it is established that under certain natural conditions, Nash equilibrium programs are efficient and “modified Pareto optimal”, in a sense made clear in the paper, but never Pareto optimal in the traditional sense.

    Original languageEnglish (US)
    Pages (from-to)227-243
    Number of pages17
    JournalReview of Economic Studies
    Volume54
    Issue number2
    DOIs
    StatePublished - Apr 1987

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    ASJC Scopus subject areas

    • Economics and Econometrics

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